Local Hotelier welcomes decision to retain low VAT rate for hospitality sector 

A Donegal Hotelier says the decision not to increase the VAT rate in the hospitality sector could safeguard thousands of jobs in the sector later this year.


The Government is today likely to extend the lower 9% VAT rate for the industry.


The measure, introduced to help combat the effects of the Covid 19 pandemic, was due to expire in August.


However Finance Minister Paschal Donohoe is to seek cabinet approval today to keep the lower VAT rate, possibly until the end of this year.


Paul Diver is the Chairman of the Donegal branch of the Irish Hotels Federation he says the sector is facing massive challenges at the minute.